Vat standard rate
The standard VAT rate in Tanzania is 18% and applies to goods and imports.
Vat zero rate
VAT zero rate applies to export transactions.
In particular, zero-rated operations include:
- Export of services;
- Export of goods;
- Transportation services related to transit through the country.
Companies with annual turnover exceeding TZS200 million (approximately USD 81,600) in the twelve months must register as VAT payers. The application must be submitted within 30 days of reaching the turnover threshold.
If the amount of input tax exceeds the amount of output tax and this surplus has been carried forward for more than six months, the taxable company may request a refund. The amount of the refund must be equal to or greater than TZS100,000.
An application for VAT registration must be submitted 30 days after the threshold is exceeded. The application can be submitted both in paper form and online. The period for reviewing an application for registration is 15 days.
Non-resident companies that do not have a permanent establishment in Tanzania are required to appoint a local tax representative to act on behalf of the company and fulfill all necessary obligations.
The retention period for VAT-related documents, including invoices, books, tax returns and other records, should be kept for 5 years after the end of the tax period or longer if required by the Tanzanian tax authorities.
Filling VAT return and payment date
VAT returns must be filed and paid on a monthly basis. Filing and payments must be made by the 20th day of the month following the tax month, unless that day is a public holiday or a weekend, in which case they must be filed on the next business day.